Compared to the no-trade situation, when a country exports a good,
a. domestic consumers gain, domestic producers lose, and the gains outweigh the losses.
b. domestic producers gain, domestic consumers lose, and the gains outweigh the losses.
c. domestic consumers gain, domestic producers lose, and the losses outweigh the gains.
d. domestic producers gain, but domestic consumers lose an equal amount.
B
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A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
A singer would willingly perform in a concert for $500,000. If she is paid $200,000 for the concert, she is
A. certainly being paid more than warranted by the level of demand. B. receiving $300,000 of economic rent. C. receiving $300,000 to cover her opportunity cost. D. not being paid her full opportunity cost.
Refer to the information provided in Table 6.3 below to answer the question(s) that follow. Table 6.3Dozens of Oysters per DayTotal UtilityMarginal Utility160?2104?3134?4152?5?8Number ofBeers per DayTotal UtilityMarginal Utility140?270?394?4114?5?14Refer to Table 6.3. Assume that a store is giving oysters and beers away for free. Consumers can have as many beers and oysters (by the dozen) as they want, but the food has to be consumed one unit at a time. If Tyler has already had one beer and two dozen oysters, then Tyler should
A. consume neither another beer nor another dozen oysters to maximize his utility. B. be indifferent between consuming the second beer or the third dozen oysters. C. next consume a beer to maximize his utility. D. next consume a dozen oysters to maximize his utility.
An increase in stock prices ________ the size of people's wealth and may ________ their willingness to spend, everything else held constant
A) increases; increase B) increases; decrease C) decreases; increase D) decreases; decrease